Comment on Policy on settlement of compulsory delivery derivative contracts
commented on
18 Feb 2019, 02:13 PM
1. As long as the contract expires worthless(OTM), you won’t have any STT obligation.
2. You will lose all the premium you’ve paid.
3. No, you don’t get the option. It doesn’t make sense to mark deep ITM contracts as ‘do not exercise’ as your loss will be quite high.